Epcg Scheme
Epcg Scheme
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• The scheme allows import of capital goods for pre production,
production and post production
• The agro units in the agri export zones would also have the facility
of moving the capital good (s) imported under the EPCG within
the agri export zone
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Technological Upgradation of existing
EPCG machinery
• The conditions governing the Technological Upgradation of
the existing capital good are as under:
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• 5 years from the date of issuance of the license.
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• The minimum exports made under the old capital good must
be 40% of the total export obligation imposed on the first
EPCG license
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• The import of capital goods for creating storage and distribution facilities for
products manufactured or services rendered for export by the EPCG
license holder would be permitted under the EPCG Scheme
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• The export obligation under the scheme shall be, over and above, the average
level of exports achieved by him in the preceding three licensing years for
same and similar products within the overall export obligation period
including extended period
• Export obligation may also be fulfilled by exports of other good(s)
manufactured or service(s) provided by the same firm/company or
group company/ managed hotel which has the EPCG license
• The export obligation under the scheme shall be, in addition to any
other export obligation undertaken by the importer, except the
export obligation for the same product under Advance License,
DFRC, DEPB or Drawback scheme
• Exports shall be physical exports ,in the case of export of computer software, the
export obligation shall be determined in accordance with policy but the conditions
that exports shall be over and above the average level of exports in the preceding
three licensing years shall not apply
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• Royalty payments received in freely convertible currency and foreign exchange
received for R& D services shall also be counted for discharge under the EPCG
scheme
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• Payments received against ‘Counter Sales’ in free foreign exchange through banking
channels as per the RBI guidelines shall be counted for fulfillment of export
obligation
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